Andrew Doherty of AssureInvest provides an update on how stress on the banking sector is affecting the investment outlook.

If there is one word to describe the calendar year 2022, it would be volatile.

Markets largely moved in response to two macro variables: inflation and interest rates. It became clear early in the year that inflation was not in fact, transitory. Record-low employment, populations eager to spend after two years of intermittent lockdowns and pandemic-induced labour and shipping constraints created a perfect storm where demand exceeded supply. The Russia-Ukraine war only exacerbated these factors.

You would be hard-pressed to find a more disliked public figure than Reserve Bank of Australia (RBA) Governor Philip Lowe. The RBA has hiked interest rates for eight consecutive months, taking the cash rate from 0.10 per cent to 3.10 per cent. This comes after Lowe assured borrowers as recently as November last year that the conditions for a rate rise weren’t expected until 2024. Compounding the pain, inflation is 6.9 per cent, eroding savings buffers and disposable incomes.

Digital assets and cryptocurrencies are not something we pay much attention to at Lawrance Private Wealth. Our view is that crypto is un-investable due to its highly speculative nature and little if any regulatory oversight. We also don’t see a repeatable and methodical way to determine intrinsic value, which is how we evaluate the investment prospects of other asset classes like equities, fixed income and property. 

The latest IPCC report says that within a decade, global warming could push temperatures to 1.5 degrees above pre-industrial levels - even in the BEST case. For investors, this means jumping on the ESG buzzword but it doesn't mean it's all just hype. Sam says the report presents opportunities to get in now. From lithium stocks to ETFs, FAANG names to clean energy players, Sam says there are many more ways to win from this ongoing trend.

The latest IPCC report says that within a decade, global warming could push temperatures to 1.5 degrees above pre-industrial levels - even in the BEST case. For investors, this means jumping on the ESG buzzword but it doesn't mean it's all just hype. Sam says the report presents opportunities to get in now. From lithium stocks to ETFs, FAANG names to clean energy players, Sam says there are many more ways to win from this ongoing trend.